BUFFALO, N.Y.--(BUSINESS WIRE)--
Rand
Capital Corporation (Nasdaq: RAND) (“Rand”), a venture capital
company which invests in growth businesses with unique product, service
or technology concepts, announced its results for the quarter and nine
months ended September 30, 2018.

Allen F. (“Pete”) Grum, President and Chief Executive Officer of Rand
Capital, commented, “During the third quarter we invested $140,000 in a
convertible secured note supporting BeetNPath’s ongoing growth. As we
previously reported, earlier this year the company updated its brand
look and feel, and introduced new packaging for its frozen entrée
product line.”

Third Quarter 2018 Financial Highlights

Reported $4.84 net asset value (NAV) per share at September 30, 2018,
compared with $4.87 at June 30, 2018. The decrease was primarily due
to a realized loss upon the sale of a portfolio company, partially
offset by a tax benefit.

Supported an existing portfolio company, BeetNPath, LLC, by investing
$140,000 during the quarter.

Investment income increased 66% and 34% over the prior-year third
quarter and nine month periods, respectively, driven by nonrecurring
loan restructuring income in the third quarter.

At September 30, 2018, portfolio fair value was $32.2 million and
consolidated cash was$4.4 million.

Total investment income in the third quarter of 2018 grew to $662,000,
up from $397,000 in the third quarter of 2017. The $265,000 increase
included approximately $233,000 of nonrecurring interest and debt
modification fee income upon a portfolio company loan restructuring. The
remaining $32,000 increase represented an 8% increase over the third
quarter of 2017. Total expenses in the 2018 and 2017 third quarters were
$448,000 and $439,000, respectively. The 2% increase is primarily due to
higher professional fees, partially offset by a bad debt recovery.

Total investment income was $1.4 million and $1.1 million for the first
nine months ended September 30, 2018 and 2017, respectively. The growth
was driven by the loan restructuring income noted above as well as the
Company’s investment focus on income-generating instruments. Total
expenses for the first nine months of 2018 and 2017 were $1.5 million
and $1.6 million, respectively.

Selected Portfolio Highlights

Genicon,
Inc. is recognized as an emerging leader in the design,
production, and distribution of patented surgical instrumentation
focused exclusively on laparoscopic surgery. The company reports
increasing market penetration, with revenue up 38% over the prior
year. Recent new contract wins or expansions from HealthTrust
Purchase Group, Vizient,
and Germany-based Helios
are expected to lead to further revenue and profit growth.
Additionally, six new inventions, as well as registration and market
approval in Saudi Arabia, are expected to be catalysts for further
global market acceptance of Genicon’s growing product offering. At
September 30, 2018, Genicon was Rand’s highest valued investment, at
approximately$4.2 million.

Tilson
Technology Management, Inc. provides network deployment and
information system professional services to telecom, construction,
utility and government clients, and successfully executes complex and
challenging projects worldwide. Tilson was recently ranked eight
consecutive years on the Inc.
5000 list, the most prestigious ranking of the fastest-growing
private companies in the U.S. Only a fraction of companies on the list
have ranked more than once, and less than 2% have made the list eight
or more times, according to Inc. Media. Additionally, Tilson projects
2018 revenue growth of over 50%, and a similar trajectory in 2019. The
company’s ongoing growth is being driven by its differentiated
capability to lead technology advancement in support of expanding 5G
infrastructure deployment. At September 30, 2018, Rand’s investment in
Tilson was valued at $2.5 million.

GiveGab,
Inc. is the Nonprofit Giving Platform, providing a quick and
easy way for fundraising professionals to raise money online.
Synergies from GiveGab’s acquisition of Kimbia earlier this year
include adopting the best practices and platforms of each company to
drive the growth of the combined organization. The company’s 2018
giving transaction volume is on pace to grow at a rate of
approximately 10x over 2017 – when it grew about 5x over 2016. Over
the past three years, GiveGab has expanded to partner with more than
150 giving days annually, while helping tens of thousands of
nonprofits raise approximately $500 million on GiveGab’s platforms in
2018 alone. At September 30, 2018, Rand’s investment in GiveGab was
valued at approximately $616,000.

As of September 30, 2018, Rand’s portfolio consisted of 29 active
companies. At that date, the portfolio was comprised of approximately
57% in equity investments and 43% in debt investments, compared with 58%
in equity investments and 42% in debt investments at September 30, 2017.

Webcast and Conference Call

Rand will host a conference call and live webcast today, November 7,
2018, at 1:30 p.m. Eastern Time to review its financial condition and
results for the 2018 third quarter, as well as its strategy and outlook.
The review will be accompanied by a slide presentation, which will be
available on Rand’s website at www.randcapital.com
under the “Investor Relations” heading. A question-and-answer session
will follow the formal presentation.

Rand’s conference call can be accessed by calling (201) 689-8263.
Alternatively, the webcast can be monitored on Rand’s website at www.randcapital.com
under the “Investor Relations” heading.

A telephonic replay will be available from approximately 4:30 p.m.
Eastern Time today through Wednesday, November 14, 2018. To listen to
the archived call, dial (412) 317-6671, and enter conference ID number
13683885. A transcript of the call will be placed on Rand’s website,
once available.

ABOUT RAND CAPITAL

Rand Capital (Nasdaq: RAND) provides investors the ability to
participate in venture capital opportunities through an investment in
the Company’s stock. Rand is a Business Development Company (BDC) with a
wholly owned subsidiary licensed by the U.S. Small Business
Administration (SBA) as a Small Business Investment Company (SBIC). Rand
focuses its equity investments in early

or expansion stage companies and generally lends to more mature
companies. The Company seeks investment opportunities in businesses with
strong leaders who are bringing to market new or unique products,
technologies or services that have a high potential for growth.
Additional information can be found at the Company’s website where it
regularly posts information: http://www.randcapital.com/.

Safe Harbor Statement

This news release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements concerning future
net asset value growth, investment returns and opportunities as well as
Rand’s plans for utilizing proceeds from sales of portfolio companies
when and if received.These statements involve known and unknown
risks, uncertainties and other factors that could cause the actual
results to differ materially from the results expressed or implied by
such statements, including general economic and business conditions,
conditions affecting the portfolio companies’ markets, competitor
responses, and market acceptance of their products and services and
other factors disclosed in the Corporation’s periodic reports filed with
the Securities and Exchange Commission.Consequently, such
forward-looking statements should be regarded as the Corporation’s
current plans, estimates and beliefs.The Corporation assumes no
obligation to update the forward-looking information contained in this
release.